KKR announced that it has become a founding signatory to the Operating Principles for Impact Management, a new market standard for impact investing introduced by the IFC, a member of the World Bank Group. KKR joins 59 other signatories, collectively representing over $350 billion in assets invested for impact, in their commitment to managing their impact investments in accordance with these Principles, which are meant to bring greater transparency, credibility, and discipline to the impact investing market.
IFC led the development of the Principles, in collaboration with leading asset managers, asset owners, asset allocators, development banks, and financial institutions, following a three-month public stakeholder consultation. The Principles aim to create clarity and consistency regarding what constitutes managing investments for impact in order to bolster confidence in the market.
Ken Mehlman, Co-Head of KKR Global Impact, joined fellow signatories in Washington, DC, today for the global launch of the Principles. He commented: “For the last decade, we have sought to learn from leaders in sustainability as we have made our journey. The IFC has been leading impact investors for many years and we look forward to learning from their thinking, as well as from other stakeholders who are committed to investing for positive impact and shared value.”
Over the last decade, KKR has been a leader in driving and protecting value throughout the firm’s private markets portfolio through thoughtful Environmental, Social and Governance (“ESG”) management, as well as measuring and reporting on performance to the public and investors. The firm also has a history of investing in businesses that promote sustainable solutions to societal challenges.
This experience of responsible investment combined with a changing landscape of global challenges led to KKR’s decision to create a dedicated Global Impact business in 2018. KKR’s Global Impact strategy focuses on identifying and investing behind businesses with positive social or environmental impact that measurably contribute solutions to one or more of the United Nations Sustainable Development Goals. KKR’s alignment with the Operating Principles for Impact Management, which you can read more about here, will build on this strategy.